Cameco Corporation (CCO.TO)

Uranium pricing is pretty dull at the moment but you could move gently in, as this is the world’s greatest uranium producer and are planning for the longer-term future. This is not something that you are going to win in the very short term.

When you look at the commodity sector in general, this company has done quite well. This is effectively one of the pure play companies in uranium. If you want exposure to cheap long-term electricity, this is probably the company to go with. Would like to see the price a little lower.

Probably the strongest of the uranium names. His view is still quite negative on the growth of nuclear energy. Japan made some noises on reopening of some reactors, which netted them huge public protests. Germany is getting out of nuclear energy. In other places, the programs have slowed.

In the uranium space, this is probably your best play. Most defensive. Long-term contracts. Uranium prices are very weak at below $50. It will get better, but you are looking at a year or so away.

His model price is $29.24 giving you a 51% upside. It is in a good Buy position here. Risk/reward at this point is fantastic.

Chart shows a rectangle where there has been a trading range and sometimes these can be bought at the bottom of the range and sold at the top if you are a relatively short-term trader. A longer-term trader would want to see a breakout at around $24. Seasonals are in your favour right now for buying at the bottom of the channel.

Great company with phenomenal assets. He is bullish on uranium long-term because it is a great source of clean power. China and India have so many nuclear plants being built. Japan has announced that a couple of their plants are coming back online. Ten year picture is bright. He would like to get in at $17.

The problem with this one is uranium. He does like uranium although he hasn't got much of it. Too many political issues right now. On a longer term basis uranium is needed.

(Market Call Minute) Uranium is really cheap right now. Demand is expected to grow 4%/year for the next few years.

Safe holding for 10 years? As a 10 year hold, it should be safe as uranium demand will come back. Countries like China and India need to have nuclear as a source of energy. This company is planning on doubling its production in the next 4-5 years. Recently made a uranium acquisition, which she found rather surprising as they wanted to follow an organic growth strategy.

Uranium and this company have always been very difficult to judge. Just announced an acquisition in Western Australia. Paid very little but not sure what they will have to pay to develop the property. Unless they are absolutely dirt cheap, he tends not to look at uranium stocks.

Doesn’t see a lot of catalysts. Stock has traded in this range. It looks like it is basing but you haven’t seen a lot of good contracts coming out. Wide differential between contract and spot price for Uranium.

Seasonal strength tends to be stronger around October into January. Wait until late October or beginning of November.

Uranium is a little bit different. What happened in Japan. It is not a company he would buy or recommend and it is a commodity and he does not recommend it.

Model price of $27.82, a 28.4% upside. Would like to see it at $19.40. You might put a half position on.